As deep value investors, we seek out low-risk investments that have great upside potential. Such ideal investments do not exist in the eyes of the academics.
Since the advent of the financial market, it is clear the deep value investing produces phenomenal performance over the long run. If your time horizon is more than 3-5 years, deep value investing is definitely the way to go.
Warren Buffett, a legendary value investor, best years were when his fund was still budding. When his funds were smaller, he was able to utilize the deep value approach to generate such phenomenal performance with annualized returns north of 20%.
Why does deep value work?“Everything should be made as simple as possible, but not simpler.” – Albert Einstein
The idea of buying stocks that are cheaper than their value is very intuitive, but most investors still end up generating disappointing results.
The philosophy behind value investing is
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